IB Net Payout Yields Model

Apple: Holiday Gifts

Analysts are providing a holiday gift with the constant price targets cuts on Apple.
The number of Buy ratings on the stock are at a low since the financial crisis.
The actual number cuts aren't that aggressive.
The stock trades at only 11.7x FY20 estimates before excluding a large cash balance.
Ever since Apple (AAPL) reported FQ4 results back on November 1, analysts have repeatedly come out negative on the stock. The company decided to quit reporting iPhone unit sales and the market hasn't stopped hammering the stock on feared sales weakness. One of the best ways to play analysts downgrading a stock in mass is to take a contrary view and the recent price cut of an ultra-bull is the likely signal that analysts are generally done cutting Apple targets.
Read the full article on Seeking Alpha. 
12/14 Update
Very rare for a mega cap like Apple to have an analyst maintain a price target nearly 65% above the current price. More proof that the stock is being hit by irrational sellers. Apple at $170 offers a great opportunity to buy alongside the company itself. 

- D.A. Davidson maintains a Buy rating on Apple (NASDAQ:AAPL) but cuts the price target from $290 to $280.

Disclosure: Long AAPL. Please review the disclaimer page for more details. 


Popular posts from this blog

Aurora Cannabis: Deal Or No Deal

C3.ai: Out Of Steam (Rating Downgrade)

Archer Aviation: Promising Developments